Compare & Apply for Credit Cards Online

Features & Benefits of a Credit Card

Credit Cards come with a range of features and benefits. They allow you to make online and in-store secure payments, build a good credit history, and offer instant access to funds during emergencies. You can earn rewards such as points or cashback on your purchases, enjoy travel perks such as access to airport lounges and travel insurance, and get protection for your purchases with extended warranties.

They also offer the flexibility to pay off balances over time and provide fraud protection. Overall, they provide convenience and extra advantages for consumers.

Different Types of Credit Cards in India

Credit card issuers in India offer a variety of cards to cater to the varied needs and preferences of the users. Some of the popular types of credit cards available include the following:

1. Lifetime-free credit cards - These credit cards are beginner-friendly. They have no joining fees or annual/renewal fees and have lenient eligibility criteria, which makes them user-friendly for new users.
2. Co-branded credit cards - offered by the credit card issuer in partnership with another company and come with a range of benefits.
3. Rewards credit cards - let you earn reward points for all your spends, and the ability to earn higher points for certain category of spends.
4. Travel credit cards - offer a variety of travel benefits such as complimentary airport lounge access.
5. Cashback credit cards - offer you cashback for all your spends, with certain spends offering the highest cashback.
6. Shopping credit cards - ideal for those who love to shop as they come with discounts and rewards at partner stores.
7. Fuel credit cards - these cards come with cashback or discounts on fuel spends.
8. Premium credit cards - offer exclusive privileges and perks to meet the distinct needs of the cardholders.
9. Lifestyle credit cards - to meet all your lifestyle related needs such as movies, dining, golfing etc.
10. Business credit cards - these cards are tailored to needs of professionals and business owners.

Choosing the right credit card that aligns with individual spending habits and financial goals can help you reap the maximum benefits of your card.

Credit Card Eligibility

To be eligible for a credit card in India, you typically need to be at least 18 years old and have a regular source of income. The income requirement varies depending on the type of card and the issuer. Having a good credit history and a positive credit score can also improve your chances of approval. You must provide identification, address proof, income proof, and other necessary documents when applying. Meeting the eligibility criteria doesn't guarantee approval, as the credit card issuer may consider other factors.

Documents Required to Apply for a Credit Card

When applying for a credit card, the documents required may vary depending on the issuer. However, in most cases you will need to submit the following documents:

1. Identity proof: such as your Aadhaar card, PAN card, Driving licence, passport, or voter's ID to establish your identity.
2. Address proof: such as electricity bill, telephone bill, Aadhaar card, or other valid proof of your residential address.
3. Annual ITR (if required): If you are self-employed or have other sources of income, you may need to submit your annual Income Tax Returns (ITR) as proof of your financial standing.
4. Latest salary slips: If you are a salaried individual, submitting your recent salary slips can help demonstrate your income and repayment capacity.
5. Duly-filled application form: This form provides your personal information and serves as a formal request for a credit card.
6. Passport-size photographs: Usually, you will need to provide a couple of recent passport-size photos for identification purposes.
7. Bank statement: Providing your bank statement, typically for the last three to six months, helps verify your financial transactions and stability.
8. Form 16: For salaried individuals, a Form 16 issued by your employer is proof of your income, taxes paid, and tax deductions.

Do's and Don'ts for a Credit Card

Mentioned below are the do's and don'ts for a credit card:

How Does a Credit Card Work?

Given below are the steps that shows how a card works:

1. They facilitate online and in-store purchases as well as bill payments.
2. When they are used for a transaction, the card details are sent to the merchant's bank for authorization.
3. The card issuer then verifies the information and decides whether to approve or decline the transaction.
4. If approved, the payment is made to the merchant and the card's available credit is reduced.
5. At the end of the billing cycle, the card issuer sends a statement detailing all transactions, previous and new balances, minimum payment due, and due date.
6. The grace period is the time between a purchase and the statement's due date, during which no interest accrues if the bill is paid in full.
7. Carrying a balance beyond the grace period may result in interest charges, determined by the card's annual percentage rate (APR), which includes interest rate and other fees.

How Do You Choose the Right Credit Card?

You can choose a card that best suits your needs, by considering the following factors:

1. Your spending pattern: go for a card that helps you maximising your savings, depending on your spending pattern.
2. The reward type: choose a card based on the reward type of your choice such as rewards points, airmiles & cashback rewards.
3. Fees and charges: ensure that the card comes with comparatively lower fees and charges.
4. Offers on the card: opt for a card that come with great offers on shopping, dining, online spends etc.
5. Welcome bonus or gift: go for a card that gives you the best welcome bonus or gift.

How to Manage Your Credit Card Wisely?

• Pay your Bill on Time & in Full: Be sure to pay your credit card bills in full and on time to maintain a good credit score and avoid higher interest charges. If full payment isn't possible, try to pay more than the minimum to reduce interest costs.
• Convert Large Purchases into EMIs: You can choose to convert any high-value purchase amount into EMIs. This helps in breaking down the expense into smaller, manageable payments, often at a lower interest rate than regular credit card charges.
• Avoid Withdrawing Cash using your Credit Card: Cash advances attract interest from the moment you withdraw, with no interest-free period. Additionally, high fees can lead to unnecessary debt. Use this option only in emergencies.
• Track your Spending Regularly: Make sure you are aware of your credit card spending by keeping track of your credit card bill statements and SMS alters by the bank. This will help you manage your spending habits. Keep checking your credit report at regular intervals to avoid any discrepancies.
• Limit Multiple Credit Card Applications: Applying for several credit cards at once can lower your credit score by opening multiple hard inquiries. Instead, analyse your choice of cards based on your spending patterns and financial needs.

Key Factors to Consider Before Applying for a Credit Card

1. Choose a Card as per your Requirement: Select a credit card based on your spending requirements that will offer benefits in your primary spending category, such as online shopping, travel, movie tickets, or store purchases.
2. Check the Eligibility Criteria Before Applying: Eligibility criteria for low-income individuals and high-income individuals are different. Entry-level cards are ideal for beginners or low-income applicants, while premium cards cater to high-net-worth individuals with higher eligibility criteria.
3. Compare Fees and Benefits: Credit cards with low joining fees or low renewal/annual fees may offer a low range of benefits, while premium credit cards or ultra-premium credit cards offer high fees and charges but also offer enhanced perks for the users. Make an informed decision based on what you need.
4. Evaluate Costs: Review annual fees, rewards capping, redemption options, and overall value to ensure you can fully utilise the card's benefits.
5. Avoid Multiple Applications at Once: Applying for several credit cards at the same time can negatively impact your credit score, so apply only for cards that suit your needs.

How to Apply for a Credit Card Online in 4 Easy Steps?

Applying for a credit card through BankBazaar is quick and simple. Just follow these steps:

1. Step 1: Fill in your personal details, including your mobile number.
2. Step 2: Enter your mobile number and verify it with the OTP.
3. Step 3: A range of cards will appear on the screen based on what suits you best.
4. Step 4: Select the card of your choice and click on apply.

Alternately, you can also apply for a card online on the bank’s website.

What Is a Credit Card Number?

It is the 12 to 16 digit number printed on the front or back of your card. It is used to identify both the credit card issuer and the account holder and is normally 16 digits long and appears in sets of four.

RuPay Credit Cards for UPI Transactions

RuPay, India's domestic card payment network, is the only payment network that offers credit card benefits for UPI transactions. The RBI permitted the linking of UPI apps with RuPay credit cards in June 2022, enabling seamless credit card payments using UPI and earning rewards in the process.

Initially, only a limited number of RuPay credit cards were available. However, major issuers like HDFC Bank, SBI Card, Axis Bank, and ICICI Bank now offer RuPay variants of their existing credit cards or are introducing new ones on the RuPay network. While some cards are specifically designed for UPI transactions and offer higher rewards on such spends, others provide standard reward points or cashback on UPI payments.

Credit cards make payments easy for all expenses online and offline while offering various benefits

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